Legal Notice for Recovery of Money

Legal Notice for Recovery of Money: How Is It Done?

A Legal Notice for Recovery of Money is a legal document of formal suggestion. It registered to start legal action to take due payments. This listed within two people and serves as a warning to the one withholding payment of dues. Further, no rule declares that legal notices limited to employee-employer feuds.

Because they can further be used to get money back from friends or colleagues. Hence, legal notices represent an important method that helps you recover money. In this article, we will look at everything you need to understand about Legal notices.

A legal notice works as a formal legal document or report. That is sent by a person or organization as a method to address their grievance. It is basically a sign that tries to return to the notice of the receiver the fact. That he or she owes the sender money.

It acts as the first step in the legal process and supports the receiver to know that if they fail to repay the dues, stricter legal action will happen. Therefore, it works as the final event for the one holding the notice to fix the issue without having to go to court.

Importance of Registering a Legal Notice for the Recovery of Outstanding Dues:

  • Helps to get the intentions of the sender loud and clear
  • May result in more active and more genial resolutions between the people
  • Easy to direct complaints legally via legal notice
  • Reminds the customer how their actions have made objections to the sender
  • Adds reliability to the sender’s claim

When to File a Legal Notice for Recovery of Outstanding Dues:

Here’s a quick look at the various conditions under which people can register a legal notice for improvement or recovery of outstanding dues.

  • If a tenant denies payment of rent to the owner. In case the landlord and the tenant had agreed upon a lease agreement which declares how much money is to be paid each month. Then the landlord can file a proper notice for recovery of dues. Moreover, the owner can also list a non-performance of liability suit as per the Specific Relief Act, 1963.
  • If an employee loses a large sum of money, a domestic inquiry must be taken. Following which the organisation must assign a show-cause report to the employee’s location. Once it determined that the worker cheated the company and left with the money. The organisation can send them a Legal Notice for Recovery of Money.
  • Employees may register a legal notice for payment of money if an employer denies them of their payment. If in case of the industry they work in comes under the labour laws, they may request the Labour Commissioner. If not, the employee can utilise Order 37 from the Code of Civil Procedure to ask for their payment.
  • A legal notice may further be filed if the company reports to a false means to deprive employees of their legal salary under the Indian Penal Code and the Companies Act, 1860.
  • Any person may file a legal notice for the improvement of Money Recovery Suit by selecting it through a lawyer, as it is the initial step before taking more offensive steps.
  • In case of a bounced cheque, the drawer can register a legal notice for the number of dues, at least within thirty days of getting the suggestion from the bank.

Requirements of Legal Notice for Payment of Dues

  • Most lawyers list legal notices in almost all civil cases, as it assists in adding credibility to their defendant’s case. However, this method not supported when it comes to illegal cases.
  • If you wish to support a case against the government or any government executive, you must register a legal notice first as per Section 80 of the Indian Penal Code. Such claims registered against government administrators for any action they took in law for the last two months.
  • If you prefer to file a legal notice for the failure of dues in case of a bounced cheque. It filed at least 30 days after getting intimation from the bank that the cheque has bounced. In case the applicant receives no payment after 15 days of filing the notice, legal action may be received within 30 days.
  • While registering legal notices in case of bounced cheques, the notice must include information concerning the cheque and the details of dishonour.

What Are the Steps in Drafting a Legal Notice for Payment of Dues?

  • The notice outlined on a lawyer’s letterhead, stating their name and place of work.
  • Notice must further include the lawyer’s qualification and contact information.
  • The notice must have features regarding the date of the issue.
  • It should specify the name, address, and contact details of the person to whom it issued.
  • Likewise, it must include the name, address, and contact details of the person declaring the notice.
  • The notice must specify how the opposing person has made the payment or violated the client’s rights.